Category Archives: Finance/Banking

A JAAHIL’S ‘FATWA’ ON HALAALIFIED RIBA BANKING

BY A U.K. STUDENT OF THE DEEN

The following is a verbatim reproduction of an article by a Deeni Student of the U.K.

“In a classic case of Juhala seeking and obtaining Fatwas from even worse Juhala, the garbage below was written and published by the self-appointed Mufti, Muadh Khan, in response to some queries posed on a website called “Muftisays”. I hope Hazrat is able to make a quick perusal.

THE JAAHILS APPRAISAL

Shariah Problem with Islamic Mortgage:

The problem with Islamic mortgage isn’t what a famous Mufti keeps moaning about. The problem isn’t even what the Scholars of Karachi keep castigating Mufti Taqi Usmani (HA) about!

The Islamic problem is that Islamic mortgage is essentially two contracts rolled into one:

Contract 1: Bank actually owns the property and the deed is in their name.

Contract 2: Bank rents the property to you but it is not a traditional rental agreement and part of your payment goes toward the capital loan (i.e. price of the property).

There are many Scholars who “correctly and rightly” say that you cannot have multiple contracts for the same transaction. There is no need to look beyond this problem into interest or (lack of interest), this entire issue is deeply problematic to begin with.

Sceptics are right in the sense that “Islamic mortgage” is a legal jargon filled transaction designed to get around the traditional “Haram Mortgage” transaction. In reality and in effect, the net transaction is no different. Let me illustrate this to you by an example, suppose you want to borrow money from me to get a car, I can do this in two ways. Suppose that the car costs 5,000 US Dollars here are two ways:

1. Interest Based: I can lend you 5,000 USD and you pay £153.89 for 36 months at the rate of 7%

2. Service Based: I can lend you 5,000 USD BUT I say for my Services you need to pay me back 5,540.20 and you pay £153.89 for 36 months

1 is Haram

2 is not directly Haram as long as we both agree and come up with some legal mumbo-jumbo

Mufti Taqi Usmani (HA) responds:

15 years ago this was put to Mufti Taqi Usmani Saheb (DB) that isn’t Islamic Mortgage (HSBC) just legal mumbo-jumbo to get around the Interest prohibition? Mufti Taqi Usmani Saheb (DB) replied that Islamic Mortgage isn’t perfect but it is for the convenience of Muslims to avoid Haram, it is the best solution we have at this time when we don’t control the financial markets and world economy and there is always room for improvements.

A student of Mufti Taqi Usmani (DB) answered by using this example:

Suppose while driving in UK you want to turn right (or left in US and the example will make sense). You see a Petrol Station (Gas station for US) and instead of going to the traffic lights and turning right properly, you cut across the station and save time and keep on going. This isn’t strictly illegal but it may be not the right behaviour or up to ethical standards of driving.

Islamic Mortgage isn’t “Strictly Haram” but it isn’t agreed upon “Halal” according to all scholars either. This is where Taqleed comes in, I had this argument on Sunniforum with the then (student and now Mufti) Abu Hajira. As a layman Muslim, Allah Ta’ala commands you to make Taqleed so if you choose to follow someone like Mufti Taqi Usmani (HA) and get an Islamic Mortgage or any other (well known and trusted scholar for that matter), there is no sin on you!

This is the bottom line you need to grasp!

YOU WILL NEVER GET ALL THE SCHOLARS TO AGREE ON ISLAMIC BANKING OR ISLAMIC MORTGAGE BECAUSE IT IS AN ISSUE OF IJTEHAAD!

What is in it for the Banks?

Banks are in there to make money and Islamic (banking) or Mortgages offers the following advantages:

1. Statically,  Muslims are financially stable with stable families and pay loans back because it is bred and drummed into Muslims to look after their families so loans to Muslims are less risky.

2. Muslims have close knit families so they are able to pay greater down payment and families often bail those out who are in trouble

3. Muslims are a financial powerhouse in the world and ready to invest

4. MOST IMPORTANT: Banks have to show a reserve against which they are given permission to lend against. Islamic Mortgages means that they have to ring-fence certain money which CANNOT be invested into what you would deem “high risk investments” and this secures their bottom line. So by investing in “Islamic Banking” they are able to leverage this amount TWICE

Muslims are their own worst enemies!

There was a time when HSBC, IBB, Bank of Kuwait etc were all competing in the UK for Muslim businesses. Barclays was also trying to get into the market but BECAUSE Muslims are “stupid” and short-sighted they didn’t kept discussing Fatwaas and market has now narrowed with HSBC and Barclays falling out. This means that you have niche banks in the business and with the lack of competition, customer lose out. Scholars should have sat together and worked out better contracts and agreed with each other for the sake of British Muslims INSTEAD

You have some scholars who have made a killing by earning money WHILE others are crying Haram, Haram and normal Muslims are confused!

WHAT SHOULD HAVE HAPPENED is that Muslims should have made sure that banking scrap and fight for their money (like what happens in the traditional market) and ensured that Islamic Mortgage is diversified as a viable product for everyone. Islamic Banking is just another form of ethical banking and that is why world’s top banks are offering it worldwide.

Islamic Mortgage is a niche product which is limited (or we have made it limited) and the competition is making it more expensive when it was actually cheaper.” (End of the Jaahils appraisal)

The Student Commenting further says:

It seems Muadh Khan, along with those of his ilk, are becoming increasingly flustered with the increasing number of sincere  brothers and sisters who are having to turn eventually to the Majlis, simply because there does not appear to be any other Ulama proclaiming the Haqq loudly, clearly, and without forked tongues. Allah Ta’ala works in wonderful and mysterious ways. The unprecedented Satanism propounded by the Ulama-e-Soo’ of this worst of eras, along with the masses of Ulama who are completely silent in the face of such evil, is actually becoming a major cause for the sincere layman, concerned with the Ummah and the Haqq, having no option but to turn to the Majlis for succour.

Displaying ever-growing desperation in his insidious attempts to discredit the Majlis, Muadh Khan aims and misfires regular potshots, piping the same monotonous tune regarding the Majlis’s “many errors”, whilst never ever specifying exactly what those “many errors” actually are. This appears to be a common hallucination symptom stemming from an acutely allergic reaction to the Haqq suffered by severely diseased Nufoos. The very same diseased individual who hallucinates “many errors” in the Haqq of the Majlis is able to write and publish the lengthiest and detailed defence online of the satanism of Tariq Jameel, whose “many good deeds” include free-mixing with women and shamelessly advertising such free-mixing on camera (including posing side by side with a Kaafir woman whilst holding a small plaque together), extolling past sins in front of the Juhala masses, treating as brothers in Islam those who explicitly brand and treat the Sahabah (radhiyallahu anhum) as Kaafirs, etc. etc. Something is truly amiss with the brain cell of this individual, and those of his ilk. (End of the Article of Haqq)

The Student has adequately taken the moron bogus ‘mufti’ to task. Our further comment will therefore be superfluous.

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THE BITCOIN DWINDLE – SATANIST PLOT FOR NEW WORLD ORDER

By The Majlis

A MASSIVE SWINDLE, SCAM AND FRAUD

There have now surfaced an abundance of evidence to confirm that Bitcoin is a massive scam set in motion by U.S.A. conspirators. It is a great step forward to achieve total control of the world’s economy by abolishing real currency and replacing it with a ghost ‘currency’.

BITCOIN IS HARAAM. IT IS HARAAM TO INVEST IN THIS SWINDLE, SCAM AND GAMBLING FRAUD DESIGNED FOR THE ATTAINMENT OF SINISTER MOTIVES.

The following is just one article from numerous others compiled by experts in the field.

FREE-FALL COLLAPSE OF BITCOIN AN ENGINEERED SWINDLE
Just how low will the financial manipulators crash Bitcoin after pushing it to $20,000?

Make no mistake about it, the engineered and ongoing crash of the cryptocurrency Bitcoin was deliberately timed to begin in earnest just before the Christmas holiday. And it has all gone down so soon after Bitcoin hit a record high of $20,000 on December 17th when the perps artificially inflated its price via high-frequency trading, futures manipulation, and other financial engineering tricks.

Is the BITCOIN bubble bursting in real time? The financial manipulators who planned this unparalleled crypto-collapse did so with great stealth and co-ordination.  Who else could have driven the price of Bitcoin into the crypto-market stratosphere so quickly but the international banking syndicate headed by Goldman Sachs?

Crypto-Carnage: CME Bitcoin Futures Halted Limit-Down
Who is really behind this controlled demolition? Everyone ought to know the answer to this question by now: the BANKSTERS.

And here’s a highly authoritative article that was published by The Wall Street Journal which shows when the banksters actually grabbed a hold of the Bitcoin cryptocurrency platform: Goldman a Lead Investor in Funding Round for Bitcoin Startup Circle

Just as Goldman was the chief financial engineer behind the controlled demolition of the stock market during the Fall of 2008, the same banksters are now demolishing Bitcoin.

Bitcoin plummets in highly volatile trading
It ought to be quite obvious to those folks who did not mortgage their homes to join the Bitcoin rush of 2017 that this pre-holiday demolition was executed with purposeful design.

While so many travel to and fro during this holiday season when drivers, flyers and train passengers are already frazzled and frayed by both the Atlanta Airport power outage and Amtrak train derailment onto Washington State’s Interstate 5, distraction and anxiety about traveling is at an all-time high this year.

Why was an Israeli cargo plane the only one permitted to depart Atlanta during the power outage?
AntiFa bragged about pouring concrete on railroad tracks near Tacoma  

Were these distractions deliberately fabricated during the exact time frame when Bitcoin began its precipitous descent?   And were they also meticulously timed to occur between the hectic period between Thanksgiving and Christmas?

This is exactly how and when the banksters perpetrate their biggest heists—using distraction, diversion and misdirection. They have complete control of the USA and can stage any hoax or false flag operation or terrorist attack when and where they so choose to. Hence, the true cause and timing of every major event during December must be carefully considered in order to correctly comprehend this complex financial black operation. Any rapidly evolving psyop as multi-faceted and captivating as the Bitcoin rip-off is assured to have profound and far-reaching repercussions.

What’s the point of this massive controlled demolition? There are actually a number of critical goals that the banksters would like to accomplish. The more salient objectives are as follows:

After conning investors to move their hard-earned money from gold and silver metals into cryptocurrencies, the banksters can wipe out that investment capital for good so that it is no longer available to support the price of gold.

Such a meteoric and devastating crash of Bitcoin will fully convince the legislators that the time is way past due to impose a strict regulatory regime on all cryptos, not just Bitcoin. In this way, the banksters will effectively control them all–forever.

•  The tremendous degree of conversion of U.S. dollars into Bitcoin is serving to remove a prodigious volume of inflationary petrodollars from the global marketplace. The more Bitcoin buying that occurs on dollar-denominated exchanges, the more US dollars will be eliminated that were produced during the successive cycles of quantitative easing.

(The prime suckers and morons ensnared into this massive trap and swindle are the numerous moron multi-billionaires of the Saudi royalty and the other oil-rich morons of the Gulf States, etc. Bitcoin has been created to pirate off and eliminate the trillions of worthless U.S. dollars. –  The Majlis)

A final crash of the largest cryptocurrency like Bitcoin will set the stage for the FED to institute their new “Fedcoin” as a stable alternative to Bitcoin and Litecoin. Such a dubious move will be explained as a means of preventing naked abuse like this: Litecoin Founder Cashes Out, Sells Entire Stake After 9,300% Rally  

The most significant reason for the supernova explosion of Bitcoin and other cryptos is the normalization of cryptocurrencies. Only in this fashion will they become sufficiently acceptable to people everywhere, whereupon a global digital currency can be established before it’s imposed worldwide via manufactured consent. Even The Economist magazine predicted the introduction of a “world currency” in 2018.

There has never been such an enormous swing in the pricing of any commodity or currency, with such great worldwide import, particularly in the span of just 4 days. There is another HUGE war going on in the background between the BRICS-allied nations and those affiliated with the Zio-Anglo-American Axis. In fact, this ongoing global conflict is reaching a crescendo, especially between the Russia-China partnership and their Anglo-American opponents. The colossal collapse in the Bitcoin price is directly attributed to this clash of civilizations, which is taking place out of existential necessity. The BRICS are grimly aware of the planetary destruction that is transpiring because of Bitcoin mining and are determined to stop it.

BITCOIN MINING ON TRACK TO CONSUME ALL OF THE WORLD’S ENERGY BY 2020
If the reader has not figured it out by now, perhaps it’s time to read: BITCOIN BUBBLE: Not if but when it will pop

That Bitcoin will eventually go all the way to $0.00 is practically guaranteed in light of the fact that there’s NO underlying value whatsoever to the cryptocurrency. After all, isn’t that why it’s called a CRYPTOCURRENCY?!

To better understand this highly misunderstood monetary phenomenon, currency investors are encouraged to consult the following exposé: Cryptocurrency Platforms: Owned & Operated by the Banksters

One thing is for sure in the course of this unfolding scam: there will be more than one major sucker’s rally before Bitcoin crashes and burns for good. And it looks like the perps may be setting up the next round of suckers at this very moment.

(Reference: State of the Nation, December 21, 2017)

Cryptocurrency Platforms: Owned & Operated by the Banksters

Digital Currencies Represent the Ultimate Control Mechanism  Over the Global Money Supply

Especially after the fiat currencies crash around the world due to the collapse of the petrodollar will the cryptocurrencies be used as a bridge to establish a new global monetary regime of digital currency.

The comment posted below was written by “Counter Analysis” under the following article:

Evidence Points to Bitcoin Being an NSA-Engineered Psyop to Roll Out One-World Digital Currency  

His analysis is right on target and cannot be disputed.

The power elite would never have permitted the rollout of the various cryptocurrencies unless they exerted complete control over them. And so they do. That they are now traded on the futures market indicates that cryptos are here to stay, as long as they can be totally controlled by the ruling elite. The primary reason for the unparalleled explosion of the BITCOIN market is to get everyone’s attention, which it has. Bitcoin has been around long enough so that investors everywhere have the necessary comfort level to dabble in it. Which many now do.

Regardless of who is really buying Bitcoins, OR SELLING IT SHORT, the cryptocurrency can either continue its supernova run in the firmament of currency investments, or it can disappear overnight should the regulators decide to crack down on it hard.  Which they can do at any time. It’s much more likely that the moneychangers at the very top of the global financial pyramid will keep this new charade going until all paper and coin currency is history, and a global digital currency is firmly in place.

This is the single most important item on the New World Order agenda — stealthily manufacturing consent toward the universal acceptance of a global digital currency. And this globalist goal must be accomplished before their planned One World Government can be established.

Do you see how all the pieces of the NWO puzzle are now conveniently falling into place? (State of the Nation, December 12, 2017)

N.B. The following comment offers an accurate and penetrating analysis of the crypto purpose behind the cryptocurrencies. Everybody is encouraged to pass it around … just in case the supernova does disappear with everyone’s hard-earned money.

Thank you. I’ve been hoping someone would write an expose on this subject. If the deep state were not behind cryptocurrencies, they would be outlawed. Instead they are going to be traded in the futures markets. Nearly half of bitcoin is controlled by a mere 1000 people. This makes it ripe for manipulation like a thinly traded stock, yet I doubt there are any regulations outside of futures exchanges concerning bitcoin manipulation.

I totally agree cryptocurrencies are the approach being taken to acclimate, and disarm people to digital currencies. Whatever features of bitcoin you praise, those features (supposed anonymity, lack of central exchange, etc.) will likely be excluded from the coming digital currency.

Having been previously exposed to digital currencies, a desperate world reeling from banking collapse will embrace a new reset digital currency if it restores their lost wealth, unfreezes credit, gets commerce and food trucks moving again, saves industry (jobs), and provides guaranteed income since many will have lost their jobs. It will be a huge miracle after the intense fear, dread, and panic of banking and currency collapse.

Digital currency enables govt to confiscate or freeze all wealth of anyone at will. Impose negative interest rates that cannot be escaped by bank runs. Makes bank runs impossible. There will be no limit on central bank chicanery. Since all currency remains always in the bank, there will be no limit on fractional reserve banking.

All digital currency will likely be deposited in one central bank clearing house. All other banks and bank branches will not be in the business of holding deposits. They will be in the business of providing the interface with the central bank, and with authorizing credit and lending. So when you buy goods and render payment with your digital currency that resides in your account at the central bank, it transfers to the sellers account at the central bank  and the currency never leaves the central bank for even a split second. Banking collapses are now impossible baring some kind of technological collapse or the wiping out of ledgers, but even then, the central bank will be back up and running as soon as the physical technology backbone is restored. And with block-chain tech, wiped out ledgers could be rebuilt after a hack or temporary bank take-down. Just imagine the identifying information that will be included in the new blockchain that currently does not exist in cryptocurrency block-chain. Identity can be attached to each transaction, ostensibly to provide security for your account, so that even if it is hacked, the damage can be traced and reversed.

The whole world is virtually internet connected either by wire, cell tower, or satellite. Every transaction can be immediately authorized or declined, especially with a redundancy of connections. A combination of block-chain and central  bank ledger can be disseminated to local bank branches and even individuals’ cell phones to prevent an interruption in commerce should communication with the central bank be compromised. Then the block chain and ledger can be matched and resolved with the central bank when the connection is resumed.

I very very strongly suspect this will be the mark of the beast system of buying and selling. It is still uncertain what the “mark” will be. It could be a microchip or a microchip accompanied by a tattoo showing where to scan for the microchip. Whatever it is, it will have to be something that can be rolled out quickly on a massive scale. How close are we. Watch for clues in any development of technology or infrastructure that can enable a rapid massive scale deployment of the new system. It will have to be ready to go in a matter of days to prevent a complete societal breakdown when the current banking system collapses. The new system may already be complete and ready for roll-out. There is no way to be sure, but watch for any clues.

Submitted by “Counter Analysis”

THERE IS NO ISLAMIC BANK

THERE IS NO ISLAMIC BANK IN THE ENTIRE WORLD

BYMufti Zar Wali Khaan (Shaykhut-Tafseer Wal-Hadeeth of Jaami’ah Ahsanul-Uloom Pakistan)

(Translated from Urdu)

‘ULAMA ARE UNANIMOUS THAT THOSE ULAMA WHO ARE LEADING (Misleading – The Majlis) THESE ISLAMIC- BANKS HAVE ERRED.”

(The ‘error’ is egregiously deliberate. The intentional ‘error’ is the effect of the avarice and greed for the tens of thousands of dollars which the international riba banks pay to these miscreant molvis and sheikhs for  issuing fatwas of jawaaz – permissibility – for their haraam riba products – The Majlis)

Some people began to announce that interest is haraam and it is obligatory to abstain from it. (Every jaahil Muslim is aware of the evil of riba. However, this announcement refers to the wiles of those who plotted to capitalize on this Shar’i prohibition by operating  so-called ‘islamic’ banks where RIBA dealings are deceptively affixed with Islamically-sounding designations to dupe the ignorant, and to provide cover for the wealthy, greedy, money-hungry  Muslim capitalists – The Majlis)

The so-called ‘islamic-banks’, fraudsters, deceits and liars who plunder and pillage the Imaan of the Ummah started taking advantage of it (i.e. of Islam’s prohibition of interest to  establish so-called ‘islamic’ banks where the same western riba system  operate, camouflaged with Islamic nomenclature –The Majlis)  Oh! that Al-Meezaan marvellous! Oh! that Al-barakah!  (Al-Meezaan is Mufti Taqi’s riba bank – The Majlis)

But, in reality there is no islaamic-bank in the whole world, not even in the noble Arab lands. There was one Al-Faisal ‘Islamic’ bank regarding which 300 senior Ulama of Makkah informed the King that “we find nothing of Islam in it. On the contrary, it is an institution of sheer interestThen while Al-Faisal bank continued with its existence, the term, Islam was deleted from it’s name so that Islam is not disgraced.

This is theft and trickery because haraam is perpetrated and perpetuated in the name of Islam. Four hundred Fuqaha from Karachi and from  around Pakistan have issued a written statement that in these so-called ‘islamic’ banks there is not even a hundredth part of a percent of Islam. Just as Ghulaam Ahmad Qaadiyaani is not a Nabee, and just as there is nothing of Islam in him, so too, in the same manner the banking system (the so-called ‘islamic’ banking system) is way- extremely far away from Islam. (These banks have no resemblance to Islam and not even have they any semblance of Islam. They are gigantic frauds, heinous agents of shaitaan. They market Rnna as trade. Describing them, the Qur’aan Majeed says: “Those who devour riba do not stand except as one who has been driven to insanity by the touch of shaitaan. That is because they say: ‘Verily, trade is like riba.’, whilst Allah has made halaal trade and made riba haraam.” There in ordered lust for the dollars has maddened them, deranged their brains and constrained them to barter away their Imaan for the boodle. – The Majlis)

Then there are those interest-based banks which people understand to be wrong as there is interest involved in it. There is lesser evil in these interest-based banks in comparison to the so-called ‘islamic’-banks, because when people deal with these interest-based banks they do so with a guilty conscience. They understand that they are embroiling themselves, Thus they acquire the taufeeq to repent. The supplicate: “Yaa ALLAAH! Do forgive us and provide us with such halaal means which are free from even a cent of contamination.” It is stated in the Hadeeth:

“To take even a dirham of interest is like fornicating seventy times with one’s own mother within the Baitullaah.” (This is the satanism which the bank molvis and the bank ‘shariah’ boards halaalize. – The Majlis)

People dealing with these interest-based banks acknowledge their sin and consider themselves to be sinful. But these so-called ‘islamic’-banks are looters in the name of Islam. There is absolutely nothing of Islam in them. Neither in Mezaan bank (of Mufti Taqi) nor in Al-barakah bank nor in any of other myths which are dubbed ‘islamic’-banks.

Ulama are unanimous that those Ulama (Ulama-e-soo’ – The Majlis) who are leading (and misleading – The Majlis) these so-called ‘islaamic banks are in a manifest error. The most senior amongst the Ulama, Maulana Saeemullaah Khaan (Rahmatullah alayh) had held a gathering of Ulama of Pakistan against these banks. The country’s most esteemed Madrasah Jaami’ah Islaamiyah published a book in refutation of these banks. Four hundred Fuqaha and Muftiyaan collectively prepared a written statement in which they categorically declared the nullity of these ‘islamic’ banks. They are null and void even in the remotest sense of Islam.

These banks are blatantly interest institutions. They are sheer interest or even worse than interest. When the heads of these banks were questioned they informed, they conceded their interest dealings. They said: “We give the interest amount to the other donors, we give them the profits too.” (This is the convolution stupidly and irrationally disgorged by those whose brains have been deranged by the spell of Shaitaan. – The Majlis) Then the hoodwink people, deceiving them to accept that this (satanism) is ‘islamic’.

If someone describes a beautiful donkey or a mule to be a mountain bull to some ignorant person, the donkey/mule is not transformed into a mountain bull, and such deception does not become halaal. The donkey and mule will remain a donkey and a mule. Or, if someone places a container of sewerage-gutter water in his fridge and affixes to it a label on which is printed with Maa-uz-Zamzam or Maa-ul-Hayaat or Maa-ush-Shifaa, there then just as this is deceit, so too is the deceit of those claiming that these banks  are  ‘islamic’. They are guilty of the most heinous lies.

Al-Hamdulillaah, Lahore is one of the leading cities of our country in which the Fuqaha and Ulama have assembled at this time. The Ulama from around the country gathered under the leadership of our Buzrugh Mufti Habeebullaah Jaan, and they once again warned the banks that they should not label any of their departments as ‘islamic’ and that they should not resort to lies. They emphasised that there is not a single place in the whole world where the banks are on the way Islamic.

When banks started putting up the banners ‘islam’, calling themselves ‘islamic’ banks, I asked one banker how is this possible? He replied: “it is not so. Our work progresses as people search for something”.

Khasirad-dunyaa wal-aakhirah.

(Destruction for him in the dunyaa and the Aakhirah.)

Thaalika huwal-khusraanum-mubeen.

(That is indeed a manifest destruction.)

(Qur’aan)

Al-Hamdulillaah, our Jaami’ah ‘Arabiyah Ahsanul-‘Uloom has also published a special edition on this subject. Its name is, “So-called islamic-bank – Clarification, Research, Fataawaa.

In the light of the research of the Fuqaha and Ulama, a veritable encyclopaedia has been prepared. Even prior to this, I have discussed the issue and have informed people, and safeguard their Imaan from the fraud of those who are perpetuating the haraam myth and deceiving in the name of Deen. Laa Ilaaha Illallaah!

The need for this clarification) arose as some people were saying that haraam is being perpetuated on a massive level, and even some molvis too are involved in it. So Maulana Saleemullaah Khaan (Rahmatullah alayh) who is their Ustaadh (He is the Ustaadh of Mufti Taqi – The Majlis) said in the same gathering: “They are not speaking the truth in this matter.” This statement of his has been recorded. That program is preserved and is on record. The write-up of that program was also published by Ahsanul-‘Uloom. These forty Fuqaha present at that time in the gathering have endorse it, stating that there is no ‘islamic banking anywhere, and that those so-called ‘islamic’ banks) are in conflict with Islam, and that it is necessary to abstain from them.

Laa Ilaaha Illallaah! What kind of age has dawned? There is dissension amongst Ahle-Haqq also. Those who are consider the flag-bearers of Deen and Ilm have fallen in manifest deviation. (They may have been associated at one time with the Ahl-e-Haqq. But now they have brazenly aligned themselves with Ahl-e-Baatil – The Majlis)

May Allaah Ta’ala safeguard the Imaan and the Khatamah (Maut – the end of life) with Khair and Aafiyah (Aameen)……

“Laa yakhaafoona fillaahi law mata laaim”

(They don’t fear the criticism of the critics (in matters of the Deen) – Qur’aan

Those to whom Allaah Ta’ala bestows such a lofty rank, they fearlessly proclaim such masaa-il (Haqque) so that the Muslims may safeguard their Imaan.

BITCOIN IS NOT CURRENCY

The notion that bitcoin or any other form of crypto ‘currency’ is real currency is baseless. This idea is based on lack of understanding of the issue. Only if the government declares bitcoin to be legal currency, will it assume the status of currency in terms of the Shariah.

Presently it is ignorance to understand that bitcoin is currency. Only if an ordinary illiterate is able to buy a loaf of bread with bitcoin will it be understood that this plot of the Yahood and other sinister forces has attained the status of currency despite the massive fraud and satanism underlying it.

As the position stands currently, bitcoin is a huge gambling and riba conspiracy. It is not trade. It does not involve exchange of material commodity. It is pure gambling.

The contention of ‘secrecy’ ascribed to it is also a massive deception. There is no secrecy and no confidentiality in this system. The sinister forces who are responsible for this new artefact of satanism have lured people into this scam to commit deals and acts which are proscribed in terms of western law and policies. Thus, persons who have made ‘secret’ transfers of funds via this shaitaani, Yahoodi system have been arrested. Whatever is done via this system is recorded by the sinister forces. Be in no doubt and do not labour in darkness and stupidity in this regard.

One Pakistani Sister who had effected transfer of funds via the bitcoin system is currently in jail in New York awaiting trial. If she is found guilty in terms of the unjust kuffaar law, she will spend the rest of her life in the torturous jails of the U.S.A. May Allah Ta’ala have mercy on her.

CURRENTLY BITCOIN IS HARAAM. IT IS NOT CURRENCY. IT IS NOT PERMISSIBLE FOR MUSLIMS TO INDULGE IN THIS GAMBLING RACKET.

THE GAMBLING SCAM OF CRYPTO-GHOST CURRENCY

[Mujlisul Ulama]

The following letter from a Brother, adds more light to the bitcoin/crypto currency which in reality is a ghost ‘currency’. It is a massive, satanic gambling operation:

Personally I got involved in the crypto currency market for a week now. I used majority of my funds in my bank account to purchase a certain currency at a low price which my friends assured me the value will double in 48 hours due to the ceo announcing huge partnerships with nasdaq 500 companies. 24 hours after purchasing the currency online my profits were at 50%.

Out of greed I did not sell rather I held the coin hoping for it to increase by another 50%. After 48 hours the announcement postponed for 2 days later and the price dropped 20% than what I originally paid. In this period I researched the company and what it invests the money in and found out that it plans on launching online betting and gambling platforms that are Decentralized (untraceable by government) out of fear of Allah I sold my coins at a loss although I knew I could double my money in 50 hours. During the 1 week period that I started trading I slept for 3 hours per day and was in a constant fikr and worry about the markets and what I could be missing out on. After some muraqaba i have concluded this form of ‘trading’ is no different to gambling. It’s like entering a casino or betting on a game and hoping you’ll win. There is no guarantee that you will gain a profit. Another Muslim friend invested in another currency that was used to control the wine trade, Alhumdulillah he got out of it. This whole crypto game is a huge gamble and our Muslims need to be taught about its dangers.

(End of letter)

COMMENT (BY MAULANA AHMAD SADEQ DESAI D.B):

The crypto currency scam is a huge Yahudi conspiracy. It is outright gambling. It is a ghost ‘currency’ which has no reality. It is devoid of reality. It operates just like gambling. It creates gambling lust in the blood of those who gamble with this ghost currency. With your real money, you buy ghost currency. Investors in this satanic stupidity will learn the hard way when the soap bubble bursts and when they find themselves having to suffer huge losses.

There is no maal (tangible commodity) involved. It is not a viable form of trade in terms of the Shariah. It is a massive gambling conspiracy which consists of Haraam compounded with Haraam.

Be contented with the Rizq Allah Ta’ala has pre-ordained for you. Rizq is fixed. It will neither increase nor decrease. Do not allow shaitaaniyat and nafsaaniyat to cultivate loss for you – loss in this dunya and loss in the Aakhirat. Greed is a disastrous evil. Rasulullah (Sallallahu alayhi wasallam) said:

“Rizq is sealed (pre-ordained and fixed), and the avaricious one (the greedy one) is deprived.”

About Bitcoins – Advice to the ‘Ulama

[By Mujlisul Ulama]

ULAMA SHOULD EXERCISE CARE, AND NOT JUMP ON THE STUPID CONSPIRATORIAL BITCOIN BANDWAGON IN A BID TO ILLUSTRATE ‘ACADEMIC EXPERTISE’. THIS IS PURE NAFSAANIYAT, AND THIS IS THE OBJECTIVE OF MAAJIN (MORON) MUFTIS MAKING HASTE WITH FATWAS OF PERMISSIBILITY,

It should be well understood that at this stage bitcoin is NOT currency. We are not saying that it cannot or will not become currency in the future. The Yahudi conspirators who control the economy of the world have their own wonderful and artful ways of fostering and establishing their plots. But at this moment understand well that bitcoin is NOT currency, hence the properties and effects of currency do not apply to bitcoin.

Our advice to muftis who rush to clamber aboard the Yahudi bitcoin bandwagon is to ascertain what the western kuffaar experts have to say about bitcoin. At all times there will be concerned and independent kuffaar experts in all fields of mundane life. After all, these expert economists who understand the intricacies of satanic banking and all paraphernalia related to the Satanist currency conspiracy, are better poised to understand bitcoin.  It is essential to heed their warnings and to tread cautiously with the process of churning out ‘fatwas’ on the basis of lack of information and misinformation. Read the following bitcoin report and advice by one of the world’s leading western bankers.

Swiss banking boss calls for regulators to act on bitcoin – AFP

THE chairman of Swiss banking giant UBS does not consider the soaring cryptocurrency bitcoin as money and has called for regulators to intervene.

Bitcoin prices have surged this year from less than $1 000 (about R13 100) in January to $17 000 (R222 700) last week, after trading in the digital currency began on the Chicago Board Options Exchange – the first time it has appeared on a traditional platform.

But in an interview with the NZZ am Sonntag weekly, published yesterday, UBS boss Axel Weber warned investors against jumping on the bandwagon, saying the bubble would inevitably burst.

“In my opinion, bitcoins are not money,” he said, adding that the virtual currency had significant design flaws.

Money was meant to fulfil three main functions and bitcoins failed at all of them, he said.

The currency was not an effective means of payment since it was not universally accepted, it was not a good measure of value since prices were not written in bitcoins, and it was not an effective way to store value, since it was inherently unstable, he said.

Weber said the main problem was that with no central bank and no issuer controlling the supply, the value was determined solely by demand, which led to huge price fluctuations in both directions.

UBS had decided to advise clients against investing in the virtual currency, he said, because the bank did not consider it valuable and it was not sustainable.

To protect investors who do not take the bank’s advice, regulators were needed, he said. (The Herald 18 Dec 2017)

(End of report)

The rational conclusion is:

– Bitcoin is not money

– Bitcoin is unsafe

– Do not invest in bitcoin

– The properties which the Shariah invests in currency are not applicable to bitcoin at this stage.

– Be alert to Yahudi plots.

The Philosophy Of Money in Islam

By Mufti Faraz Adam

Introduction
The last decade has witnessed many events and developments in the financial world such as the global financial crisis, the economic reforms in China, the slump in oil prices and the global drift towards a cashless economy. The digitisation of the economy has innovated payment methods  and revolutionised the concept of money. Nations would barter goods they had in surplus for goods they needed as early as 9000 BC. Grains and cattle were popular goods of barter. In 1200 BC, cowries – the shells of a mollusc – were used in China as money (Wray, 2012). Thereafter, bronze and copper cowrie imitations were manufactured in China at the end of the Stone Age in 1000 BC (Davies, 2002). This is considered to be the earliest form of metal coins. Metal tool money such as knives and spade were also used in China. The first official currency was minted by King Alyattes of Lydia in modern day Turkey in 600 BC (Luo, 1999). The coins were developed out of lumps of silver and took the familiar circular form. This technique was duplicated and refined by the Greeks, Persian, Macedonian, and later the Roman empires. These empires used precious metals such as gold, silver and bronze whilst China  used based metals (Luo, 1999). In 118 BC, the first documented type of banknotes came into existence in China, where leather money was being circulated in the form of one-foot-square pieces of white deerskin with colourful borders. From the ninth to the fifteenth century, China experienced the rapid growth of paper banknotes in circulation to the point that their value rapidly depreciated and inflation soared. In 1816, gold was officially made the standard of value in England. Although banknotes were in use prior to this, this was the first time that their worth had been tied to directly to gold. In 1860, Western Union developed e-money with electronic fund transfer via telegram. In 1946, John Biggins invented Char-It Card, the first credit card. European banks began offering mobile banking with primitive smart phones in 1999. Electronic money was further developed when contactless payment cards were issued in 2008 in UK for the first time. 2008 also witnessed the birth of Bitcoin: a cryptic peer to peer electronic cash system (Bank of England, 2014). This evolution highlights the global shift towards a cashless economy.

The Philosophy of Money in Islam Islam does not recognise money as a subject matter of trade, except in some special cases. Money has no intrinsic utility; it  is only a medium of exchange; Each unit of money is exactly equal to another unit of the  same denomination, therefore, there is no room for making profit through the exchange of these units inter se. Profit is generated when something that has intrinsic utility is sold for money or when different currencies are exchanged, one for another. The profit earned through dealing in money (of the same currency) or the papers representing them is interest, hence prohibited.

Ibn Taymiyyah (d. 728 H) states that the physical body of money is never the objective of acquiring money, rather, it is the counter-exchange which is the objective and benefit of money. [Majmu’ al-Fatawa] 

The owner of the money must spend or put labour to derive benefit from money. If the money is lent in the form of a loan, interest cannot be charged on it. Money is simply a unit of measurement. Thus, money is not a commodity in Islam. Its reward is not guaranteed, instead, it is contingent on the result of production from productive activity which generates surplus value. [Viability of The Islamic Dinar, 73-90].

Ibn Taymiyyah states in another place: “When currencies and money are inter-traded with the intention of investment and profit, it opposes the very purpose of money and Thamaniyyah.” [Majmu al-Fatawa] 

Ibn al-Qayyim (d.751 H) states: “Money is never sought for itself; rather, it is used as a means to gain commodities. When money begins to be treated as a commodity and becomes the objective of transactions, the entire (economic) system will become corrupted and in crisis.” [I’laam al-Muq’een]
   
Imam al-Ghazali (d.505 H) states:  “Allah Ta’ālā created dinar and dirham for circulation and to be an equitable and just standard between different assets. They are the means to all other assets; they are precious in themselves but not desired for themselves.” [Ihya’ Ulum al-Deen]

Money in the Quran and Prophetic traditions
The Quran describes the role of money in the following manner: “Do not entrust your wealth to the feeble-minded, which Allah has made to maintain you”   [Quran 4:5]  

The word used to describe wealth in this verse is Qiwam. This refers to something made to maintain, support and sustain others. This word reflects the true essence of money; money is a powerful means which Allah has created to upkeep and maintain the entire worldly system. It is the means to an end; not an end in and of itself. The end goal of money is to sustain one’s worldly affairs to facilitate focus on the Hereafter. 

The primary sources of Islam have not defined any characteristic nor condition for money.[Majmu’ al-Fatawa]. The Qur’an and Sunnah only refer to the prevalent money in circulation at the time: Dinar and Dirham. At the time of revelation, the bimetallic currency was in use. In fact, the two verses of the Quran (3:75) and (12:20) shows that the previous nations also used Dirhams or silver coins. Imam Abd al-Barr states that Muslims of the prophetic era used the Roman Dinars and Persian Dirhams (Shukri, 2007).  

Money in Islamic history 
Caliph Abdul Malik ibn Marwan introduced the first Islamic dinar and dirham in the year 76 Hijrah (Shukri, 2007). During the Mamluk dynasty (872-922 A.H/1468-1517 CE), Fulūs (copper coins) came into existence to use in small commercial transactions. Its purchasing power was very limited and was for common daily needs of life (Wan Kamal, 2006). In the Ottoman empire, money was further developed. The Ottomans produced the currency named Qaimah in the form of paper money. In 1914, the Ottomans officially declared that paper money was the only legal tender for the medium of exchange (Yaacob, 2013). 

The above developments across the Islamic empires support the view that Islam has not defined currency, instead, it has left it to people to decide their currency. Ibn Taymiyyah states that the Shariah has not defined any specific condition nor definition for currency and money, and has instead left it to the ‘Urf and understanding of the people. [Majmu’ al-Fatawa]

Hence, the Hanafī jurists state that assets or commodities become money and currency by Ta’āmul (common usage) and Iṣṭilāḥ (common agreement) (al-Kasani). Imam Ahmad also opined that currency and money can be identified by the agreement of the people (Ibn Qudamah).  

Money according to contemporary Muslim thinkers  The introduction of fiat currency witnessed a boom in writings and researches on money. Dr Asmatullah (2013) highlights the opinions of Islamic scholars on what is money. He presents three opinions on what Islamic scholars consider as money: one group of scholars consider gold and silver as real money. A second group of scholars only class minted coins as money regardless of the metal its composed of. A third group of scholars suggest that gold and silver are the real, accepted other forms of money, other items can also be considered as money upon fulfilling certain requirements. Although this paper does not consider nor discuss virtual currencies, an argument is presented on the prerequisites in Islam to consider something as money. Yaacob (2014) addressed another aspect to currency which Dr Asamatullah’s paper failed to address: the evolution of money.  Yaacob (2014) discusses how the understanding of what is money has developed. In this paper, he highlights how paper money evolved from being a debt instrument to being an independent form of money.  However, the most this paper considers in terms of evolution of money is fiat currencies.  Similarly, Mani (1984) discusses the reality of paper money in his paper. The main contribution of this paper is the consideration of whether money has to be government backed to be considered as money. The paper proposes three views: the mineral view, the governmental view and the psychological view.

Types of Money Discussed in Fiqh texts
Islamic jurists state that money is of two types: 

Natural Money (al-thaman al-khilqī) – money created to serve as a medium of exchange and naturally possesses monetary value. Gold and silver are natural money. Imam al-Ghazāli (d.505 H) refers to gold and silver as natural money which Allah The Almighty created for mankind to use as a standard and measure to price and valuate (al-Ghazali, 2011).     

Artificial and customary money (al-thaman al-‘urfī) – money adopted as a medium of exchange whereby the monetary value is extrinsic to the money.  Commodity money and fiat currencies are common artificial and customary forms of money. 

Commodity money refers to those assets which intrinsically has value and serve another function but become an acceptable and popular medium of exchange.  This was an accepted form of money in Shariah.   

Commodity money are assets used as money that also have intrinsic value in some other use.  In other words, it can serve as money as well as commodity due its intrinsic value. Salt, animals, shells, grains etc. are forms of commodity money. Commodity money is an acceptable form of money in Shariah when people attribute Thamaniyyah to a commodity. 

Fiat money gets its value from a government (enforced) order (i.e. fiat). That means, the government declares fiat money to be legal tender, which requires all people and firms within the country (are forced) to accept it as a means of payment. Unlike commodity money, fiat money is not backed by any physical commodity. By definition, it does not have intrinsic value. Hence, the value of fiat money is derived from the relationship between supply and demand. Most of the world’s paper money is fiat money. Fiat money is also an acceptable form of money in Shariah after the government assign a note, coin or electronic money value and Thamaniyyah.    

One of the key differences between the two is the source of monetary value (Thamaniyyah) i.e. who and what primarily assigned it as money. Natural money has intrinsic Thamaniyyah and customary money has extrinsic Thamaniyyah. Gold and silver innately possess Thamaniyyah by which people consider them as stores of value and are ready to exchange goods in lieu of gold and silver.  What is interesting to consider is that besides their unique properties, gold and silver have nothing unique about them to signify the attribute of Thamaniyyah. Nevertheless, across time, humans have naturally valued gold and silver which led them to use it as currency. It is as if the Thamaniyyah is placed by Allah into the hearts of humans for gold and silver and thus, Thamaniyyah has become a permanent description of gold and silver. Besides gold and silver, artificial and customary money such as commodity money and fiat money do not innately possess Thamaniyyah. Although commodity money has intrinsic value, it does not have Thamaniyyah. Humans naturally do not perceive commodities as a medium of exchange, rather, they are the subject of an exchange.  On the other hand, fiat currencies do not have intrinsic value to serve a function nor do humans naturally consider them to possess Thamaniyyah, instead, an extrinsic force adds the notion of Thamaniyyah to fiat currencies which is then perceived by the masses. Thus, money can be divided into the following: 

1) Al-Thaman al-Khilqī (gold and silver) – intrinsic Thamaniyyah and intrinsic value allowing it to be used for other purposes such as jewellery.

2) Al-Thaman al-‘Urfī (customary money)
A) Commodity money – has intrinsic value allowing it to be used for other functions but does not have intrinsic Thamaniyyah. B) Fiat money – No intrinsic value and therefore does not provide any considerable function besides being a medium of exchange. Neither does it have intrinsic Thamaniyyah

Commodity money is an asset used as money that also has intrinsic value.  In other words, it can serve as money as well as a commodity due to its intrinsic value. Salt, animals, shells, grains etc. are forms of commodity money. Commodity money is an acceptable form of money in Shariah when people attribute Thamaniyyah to a commodity.

Fiat money gets its value from a government order (i.e. fiat). That means, the government declares fiat money to be legal tender, which requires all people and firms within the country to accept it as a means of payment.  Unlike commodity money, fiat money is not backed by any physical commodity. By definition, it does not have intrinsic value. Hence, the value of fiat money is derived from the relationship between supply and demand. Most of the world’s paper money is fiat money. Fiat money is also an acceptable form of money in Shariah after the government assign value to a note, coin or electronic money and Thamaniyyah.     

Thaman, commonly translated as price, is a broad term used to describe any medium of exchange in a sale regardless of what the medium is: currency, assets or a debt.  Every sale contract requires a Thaman for validity.  However, not every Thaman is currency or money. In other words, the trait of Thamaniyyah is not in everything used when paying for goods.   

Ibn Taymiyyah (d. 728 H) states that the Sharī’ah has not defined any specific condition nor definition for currency and money, and has instead left it to the ‘Urf and understanding of the people. Hence, the Hanafī Fuqahā’ state that assets or commodities become money and currency by Ta’āmul (usage) and Iṣṭilāḥ (common agreement).  Imam Ahmad (d.241 H) also opined that currency and money can be identified by the agreement of the people [al-Mughni].  When something becomes currency or money in Shariah, the rulings of Zakat, currency exchange, Ribā and other such rulings apply to the currency.    

The legal consequences of being Thaman (price):
1) When transacting, the Thaman (price) becomes a debt upon the buyer.
2) It is not necessary to own the monetary amount and price (Thaman) at the time of transaction.
3) A transaction is not nullified with the non-delivery of the Thaman.
4) Thaman can be re-negotiated after a transaction except in a ṣarf and Salam contract. 

Characteristics of Thaman:
1) Benefit from Thaman is derived by spending. It serves no other purpose whilst in one’s ownership 2) Thaman is used as a standard for pricing
3) Thaman is used as a medium of exchange to acquire assets with intrinsic value 

The Concept of Ta’āmul and Iṣṭīlāḥ for Establishing Currency

Ta’āmul refers to common usage. Iṣṭilāh refers to mutual concurrence. The term Ta’āmul is synonymous to ‘Urf and ‘ĀdahTa’āmul is established when the usage of something becomes dominant and becomes the standard in affairs and dealings. 

Iṣṭilāḥ (mutual concurrence) is a similar concept to Ta’āmul. Imam Abū Ḥanīfah (d.150 H) and Imam Abū Yūsuf (d.182 H) were of the opinion that a commodity can be considered as money upon the agreement of only the two transacting parties. Whereas, Imam Muhammad (d.189 H) viewed that for commodities to be considered currency and money, general and widespread Iṣṭilāḥ is required for commodities to be money and currency [al-Hidayah]. 

Thus, according to Imam Muhammad (d.189 H), only when commodity has public acceptance will it be regarded as money.   Mufti Muhammad Taqi Uthmani states that the preponderant position is that of Imam Muhammad. Thus, Iṣṭīlāḥ can only be activated and deactivated by the public and not by the transacting parties alone.

Besides Dinar and Dirham, other assets which became a currency without the intervention of a state did so upon Ta’āmul and Iṣṭilāḥ. In historical times, assets and raw metals were commonly used in daily chores and affairs.  Therefore, assets and raw metals which served other purposes in daily life would not be regarded as money until Ta’āmul (usage as money) transpired. [Al-Mabsut]  Ta’āmul and Iṣṭilāḥ were the indicators of something transforming from Urūḍ (assets) to Thaman (money). Ta’āmul is a natural process which takes time to establish. A habit is formed after an industry, area or market deal with something as money over a given period of time, establishing a Ta’āmul. Some of the apparent indicators of Ta’āmul are:

• The ẓāhir and apparent understanding of such assets is that it is money.  
• People regard them as money extemporaneously. 
• The first description or definition that comes to mind of such assets is of money. 
Thamaniyyah becomes their second nature and innate trait.  
• The obvious form of payment becomes these assets.    

However, money which was coined and released by the government, was money from its inception. A natural process of Ta’āmul was not required as people regarded that asset as money upon circulation. The government establish Ta’āmul and ‘Urf by legislation. Thus, Mufti Taqi Uthmani indicates that an ‘Urf can be established with legislation. Minted coins served no other purpose but as a medium of exchange from inception due to the ‘Urf being implemented and imposed by the government. In such an instance, the natural process of Ta’āmul and forming a habit is fast tracked by legislation.   

Assets which become money and are given the quality of Thamaniyyah upon Ta’āmul can also be deactivated as money once they are withdrawn or no longer used as money. The Thamaniyyah being removed from such items reverts them back to assets and raw metals. This can be understood in commodity money which continue to serve their primary function upon being withdrawn and out of circulation.   

The Thamaniyyah (monetary element) in Dinar and Dirham can never be deactivated or removed, as that is intrinsically and innately instilled in these precious metals by Allah. [Al-Ikhtiyar]

The Fiqhi (juristic) Components for Currency 
This section analyses the components required for any item or asset to be considered a currency. 

Māl (Wealth) 
The primary component for any counter value or consideration is Māl. An accepted definition of a transaction among Muslim jurists is ‘an exchange of Māl in consideration of Māl’ (al-Marghinani). Any consideration in a commutative contract must be Māl. If the consideration is not Māl, the contract is void (bāṭil). Therefore, the first fundamental requirement for money is that it must be Māl. Scholars differ in their understanding of Māl.  

Linguistically, Māl in the Arabic language refers to anything which can be acquired and possessed; whether it is corporeal (‘ayn) or usufruct (manfa’ah); examples of this include gold, silver, animals, plants and the benefit derived from assets such as living in homes, riding vehicles etc. (Wohidul Islam, 1999). Something which cannot be possessed, cannot be considered as Māl linguistically. For example, birds in the sky, fish in the water, trees in forests are not Māl in terms of the Arabic language as they are not in any person’s possession (al-Zuhayli, 1985).

After the codification of Islamic law by various schools, the term Māl was coined to denote different technical meanings and concepts. Thus, jurists from different schools differed in their understanding of Māl. Wohidul Islam (1999) categorises the definitions of Māl into two definitions and understandings: The Hanafi understanding and the majority understanding. 

If we consider Wohidul Islam’s (1999) categorisation, it becomes clear that even among the Hanafi jurists, different definitions of Māl are found. However, when closely examining the definitions, the variance is not due to a difference in the nature of Māl, but simply due to the different ways of expression (Wohidul Islam, 1999). For example, some of the common definitions are:

1) Māl is what human instinct inclines too and which is capable of being stored for the time of necessity (Ibn Abidin, n.d.).
2) Māl is that which has been created for the goodness of human beings. Māl brings with it scarcity and stinginess (Uthmani, 2014).
3) Māl is that which is normally desired and can be stored up for the time of need” (Majallah, 2012). 

According to the Hanafi jurists, Māl is “what is normally desired and can be stored up for the time of need”.  This definition denotes that the two key criteria for defining Māl in the Hanafis’ view are “desirability” and “storability”.  The first criterion clearly links Māl to its linguistic root mayl, which means inclination or desire. Mufti Taqi Uthmani describes desirability as something which is beneficial. However, Shaykh Salah Abul Hāj states that the condition of desirability excludes undesirable articles of trade such as humans etc. 

Ibn ‘Ābidīn (d.1252 H) presents another definition of Māl as “something created for the benefit of man which people hoard and aspire”. Imam al-Lacknawi (d.1304 H) has a similar discussion on Māl.

In terms of storability, Ibn ‘Ābidīn (d.1252 H) states that this condition excludes Manfa’ah (usufruct)45 as Manfa’ah is Milk (something that comes into your ownership) not Māl.  In other words, Manfa’āh is something which comes into one’s ownership as a result of trading Māl and is the usufruct of the Māl and not Māl in itself.  Thus, in a rental contract, one gets ownership of the Manfa’ah and not the Māl (leased item) which is providing the Manfa’ah. Thus, intangibles which can be stored and retrieved are different to Manfa’ah. The former will be Māl whilst the latter is not Māl according to the Hanafi legal theory. 

Storability simply means that something can be retrieved for use later. Thus, thin air, an odour or scent, a passing thought in one’s mind are not ‘storable’. The jurists put this condition for Māl because only storable items can be retrieved and used, and the entire purpose of Māl is usage.   

Although some Hanafi jurists have stated that Māl must be a physical entity, Mufti Taqi Uthmani dispels this argument and states that the Quran and Sunnah have not explicitly defined Māl, rather, Shariah has left it to the understanding of people. Furthermore, he argues that some Furu’ (substantive laws) in the Hanafi school discuss intangibles as Māl. He thereafter quotes the Fatāwā of late Hanafi jurists which consider electricity and gas as Māl despite being intangible.  Thus, intangibles can also be Māl on condition they are desirable and retrievable.  It is not necessary for intangible Māl to remain after using, it may be an intangible which is consumed and depleted upon usage.  The condition of perpetuity is not required in physical Māl either, hence, food is Māl despite being used by consumption. 

The Shafi’i jurists have included usufruct in the definition of Māl. Al-Zarkashi states that, “Māl is what gives benefit, i.e. prepared to give benefit”, and he continues to say at mal can be material objects or usufructs (al-Zarkashi). al-Suyuti states: “The terminology Māl should not be construed except as to what has value with which it is exchangeable; and the destructor of it would be made liable to pay compensation; and what the people would not usually throw away or disown, such as money, and the likes” (Wohidul Islam, 1999).

From among the Hanbali jurists, al-Kharqi states that Māl is something in which there exists a lawful benefit (Wohidul Islam, 1999). Al-Buhuti elaborates on this definition and states that something in which there is not benefit in essence, such as insects, or where there is benefit but it is unlawful in Islam, such as wine, cannot be considered as Māl. 

Taqawwum 
Another requirement for Māl itself to be exchangeable and tradeable is that it must be Mutaqawwim (possess legal value) for transaction to be legally sound (ṣaḥīḥ). 

Mutaqawwim refers to an item or subject being lawful to use in Shariah. Therefore, Ali Haydar states that the criteria for any item to be tradeable and exchangeable are:

1) Tamawwul 

2) Taqawwum 

Tamawwul refers to anything used as Māl. Taqawwum refers to the item being lawful in Shariah as a result of being considered valuable.  

Thamaniyyah 
Thamaniyyah refers to money having two critical functions:

1) Independent standard of value 2) Unit of account  

The first function of Thamaniyyah is to enable money to independently price and valuate goods. The currency is not valued against something else in its market of operation. The entire objective of currency and money is to be a means to facilitate transactions with ease without having to refer to any other benchmark or index. It is a common and widespread reference of value which does not require a further benchmark to understand its operational worth in a market or industry. If money constantly required benchmarking in a local and domestic market, this would undermine the entire function of currency.  

In addition, for something to be an independent standard of value, it necessitates that it has stability and widespread acceptance. Money is an entire system and Intiẓām. The system of money has been established to bring stability in our worldly life and to be of benefit to man. It is a standard and measure for value. Hence, in ancient times, money was weighed in a scale, reflecting the very essence of money – a means to balance and bring order in the world. Thus, Allah states: 

“Do not entrust your wealth to the feeble-minded, which Allah has made to maintain you”   [Quran 4:5]    

Therefore, if money does not have stability and is plagued with gross uncertainty and severe volatility, it loses its primary role and function. Something unstable cannot bring stability to others. 

The second function of Thamaniyyah is to be a unit of account. This refers to being a primary reference point and yardstick for people to use to post prices and record debts.  It is the thing that goods and services are priced As discussed previously, the characteristic of which has Thamaniyyah will be currency. Thamaniyyah Thamaniyyah singles out  currency from all other assets.

An asset (monetary value) is the  key element in an asset which qualifies it to serve as currency  and money. It is these three  features in currency which define  money in Islamic law.  

These three features are similar to what conventional economists define as the functions of money.

Centralisation Necessary for Money in Islam?
Until the caliphate of Abdul Malik ibn Marwān, the Islamic government did not control the currency nor its coinage. The Islamic government did not have a ‘Royal Mint’, however, Sayyiduna ‘Umar ibn al-Khaṭṭāb raḍiyallahu ‘anhu did introduce some measures to stabilise the alloy, content and weight of silver coins.  In the year 74 AH, the government of Abdul Malik ibn Marwān established a monetary system and an Islamic dirham.  Furthermore, mint houses were established which took control of the coins in circulation and improved the quality and consistency of the currencies. 

In the early decades of Islam, money was thus decentralised and left to public practice.  However, one may argue that money was still centralised since the Muslims used the Dinar – a Byzantine currency – and Dirham – a Persian currency.

The Hanafi jurists state that Ta’āmul can establish currency just as coinage and minting from the government established currency. The Hanafi jurists reasoned that anything minted and centralised would give a known benchmark and point of reference, thus, creating ease in the markets and facilitating transactions. 

The Shafi’ī jurists state that it is disliked for other than the government to mint coins and currency as it was the role of the government. Furthermore, it was a secure method to combat counterfeiting, forgery and corruption.

The Hanbali jurists are explicit in stating that it is not permissible for the Sultan to ban the currency commonly used by people as it will cause financial harm to the people, unless they are recompensed proportionately in the new currency without a fee.  Considering the benefit and harm for the masses, Imam al-Ṣuyūṭī (d. 911 H) also states that it is disliked for the government to withdraw or nullify a currency commonly used among people.  Al-Buhūtī (d.1051 H) says that the reason why the government should solely take control of minting is to benefit the people and to make it easy for them in their transactions and affairs. 

From the above, it is evident that the jurists and economists in Islam favoured a centralised monetary system because of the following reasons:

1) Trust in the currency
2) Presence of a regulatory framework
3) Secure system
4) Wide acceptance
5) Ease for the people in pricing and transacting
6) A benchmark for transactions  

Thus, if these characteristics are found in a decentralised system, there is nothing to prohibit such a system in Islam. These underpinning principles are the ideals for currency and money in Islam.  The government and ruling authority would have been the most efficient and instrumental in achieving these ideals.  It is on the back of this it seems that classical scholars favoured a centralised system. However, the reality is that the Quran and Sunnah have not defined currency, instead, they have left it to the understanding of the people and custom of the people as mentioned by Imam Ibn Taymiyyah (d.728 H). This is a common feature for those aspects of law which are fluid, dynamic and adjustable.   

Considering that a centralised system is not necessary, Shaykh Abdullah al-Mani’ states: “Money is thus whatever is agreed to be such, whether by government authority or public practice.” 

Thus, money can be determined by centralisation and decentralisation. If a decentralised system can provide benefits similar to that of a centralised system, a medium of exchange can become money through public practice and widespread acceptance. 

Conclusion  
This research used an inductive process by interpreting classical legal texts to identify the principles of defining money in Islamic law. Three elements were identified for anything to be considered as money: Māl (wealth), Taqawwum (legal value) and Thamaniyyah (monetary usage). The concept of Māl was analysed; different definitions and understandings were presented. A famous definition was “what is normally desired and can be stored up for the time of need”. Two key criteria for Māl were highlighted from this definition: “desirability” and “storability”. Storability simply referred to something retrievable for use at a future date. On the other hand, desirability referred to something beneficial and lawful for use which people had an inclination to. The second condition was Taqawwum, which meant that the asset must be lawful. The final condition was Thamaniyyah. Thamaniyyah referred to the potential of something to be a measure of value and be commonly used as a medium of exchange.

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